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Define equity theory and discuss the two types of inequity.
Payback Period
The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.
Useful Life
The expected period of time during which an asset remains useful for the purposes for which it was acquired.
Payback Period
The amount of time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment itself.
Discount Rate
The discount rate is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.
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